This study aimed at evaluating the oil price instability and the industrial sector in Nigeria from (1980-2018). The effect of oil price on the county’s industry has been and continuous to be a keeninterest to many people, particularly economist. Over the years, oil has played a critical role to sharpen countries development. Therefore fluctuations in real business cycles have important implications, this is because fluctuation of the oil sector affects all other sectors of the economy and by this implication, it affects the macro- economic polices of the country which can be seen as a problem. The objectives include to determine the impacts of oil price on government expenditure inflation, exchange rate and imports on industrial sector output in Nigeria. This study therefore conceptually, theoretically and empirically reviewed the oil price on industrial sector output in Nigeria. Ex- post  facto designed which adopts secondary data were employed due to availability of existing data which was subjected under the statistical technique of VAR Approach( vector autoregressive approach). Different test where performed in eliminating white noise. The result reveled that oil price has a significant effect on the growth of industrial sector,exchange rate can be used